The impact of green finance, eco-innovation, renewable energy and industrialization on CO2 emissions in asian countries: Policy implications for Vietnam

Abstract

nvironm ntal d gradation du to CO2 missions pos s a significant chall ng to sustainabl d v lopm nt in Asian, primarily driv n by incr as d fossil fu l consumption r sulting from rapid industrialization and conomic xpansion. Th r for , ff ctiv int rv ntions ar crucial to addr ssing th s chall ng s. This study xamin s th int rr lationship b tw n gr n financ , co-innovation, r n wabl n rgy, industrialization, and CO2 missions in 22 Asian countri s from 2003 to 2023. Using annual pan l data and conom tric analysis, including th Cross-S ctional Autor gr ssiv Distribut d Lag (CS-ARDL) mod l, this r s arch highlights th critical rol of gr n financ , co-innovation, r n wabl n rgy and industrialization in mitigating CO2 missions. Th findings indicat that gr n financ significantly contribut s to mission r duction by financing cl an proj cts and promoting sustainabl inv stm nts. Similarly, co-innovation nhanc s mission r ductions by improving n rgy ffici ncy and facilitating th adoption of cl an r t chnologi s. R n wabl n rgy g n ration and consumption hav m rg d as k y factors in r ducing fossil fu l d p nd nc and low ring gr nhous gas missions. In contrast, industrialization has minimal ff cts in both short-t rm and long-t rm on CO2 missions. This study provid s mpirical vid nc to guid polici s that balanc conomic growth and nvironm ntal cons rvation in Asian, with sp cific policy r comm ndations for Vi tnam. Additionally, th findings contribut to th lit ratur on sustainabl d v lopm nt by illustrating th compl x r lationship b tw n conomic growth and nvironm ntal sustainability, th r by supporting policymak rs in promoting gr n transitions and achi ving long-t rm sustainability.